RNS Number : 2486E
  Andrews Sykes Group PLC
  25 September 2008
   

    Andrews Sykes Group plc
    Interim Financial Statements for the six months to 30 June 2008
    Chairman's Statement

    Overview and financial highlights

    I am pleased to be able to report that, despite a general economic slowdown in the UK, the group's results for the first half of 2008
show a marked improvement compared with the same period last year. Management continue to show initiative and sound judgement developing
markets that are not only less weather dependent than our traditional products and services but are also less reliant on the market sectors
most affected by the current UK slowdown.

    The group's diverse base of operations predominantly across the UK, Northern Europe and the Middle East together with a low level of
imports into the UK from Europe mean that the current weakening of Sterling against, most notably, the Euro has not had a significant impact
on the group's profitability in the current period. In addition the group has the benefit of interest rate caps covering the majority of the
bank loans which have been effective in protecting it from the increase in the cost of borrowing seen by many over the past months.

    The financial highlights of the period compared with the first half of 2007 are as follows:



                                                                2008        2007
                                                               �'000       �'000

 Revenue                                                      33,873      27,185
 EBITDA*                                                      10,550       7,569
 Operating profit                                              9,019       4,731
 Profit after tax for the financial period                     6,169       2,857
 Basic earnings per share                                13.85 pence  6.41 pence
 Net cash inflow from operating activities                     5,854       3,414
 Equity dividends paid                                        14,970           -
 Closing net debt                                             22,182      14,242

 * Earnings Before Interest, Taxation, Depreciation,
 Amortisation, Impairment provisions and exceptional
 items as reconciled on the face of the income
 statement


    Operations review

    Our main UK trading subsidiary, Andrews Sykes Hire, continues to perform well. It continues to develop its business in non seasonal hire
markets, particularly through its specialist hire division. Its traditional products have also performed well, especially the pumping
division, which has benefited both from the deliberate decision to enter into longer term contracts guaranteeing revenue income as well as
unusually wet conditions and the opportunities so provided. 

    Our overseas operations in the Middle East and Northern Europe both continue to expand and further develop their market sectors. This is
particularly so in the case of the Middle East with management taking full advantage of the level of work currently being undertaken in this
region.

    Dividend and pension scheme payments

    During the current half year two interim dividends were paid that in total amounted to �15 million. Clearance was obtained both from the
pensions regulator and the pension scheme trustees and as part of this process a special one-off payment of �1.7 million was made to the
pension scheme. Further details of these payments are given in note 6 to these interim financial statements.


    Prospects

    The summer in the UK and Northern Europe has been very similar to 2007 with disappointing low average temperatures that have done little
to stimulate the demand for our air conditioning hire business. Nevertheless management initiatives and the move to less weather related
products continue to be effective and we currently anticipate that the second half of 2008 will be in line with last year.



    JG Murray
    Chairman


    24 September 2008
      Andrews Sykes Group plc
    Consolidated Income Statement
    For the 26 weeks ended 30 June 2008 (unaudited)


                                      26 weeks               26 weeks          52 weeks
                                         ended                  ended             ended
                                       30 June                30 June       29 December
                                          2008                   2007              2007
                                                      (as restated)**
                                                                �'000
                                         �'000                                    �'000

 Continuing operations


 Revenue                                33,873                 27,185            57,846
 Cost of sales                        (15,552)               (12,696)          (25,816)

 Gross profit                           18,321                 14,489            32,030

 Distribution costs                    (4,959)                (4,250)           (9,751)


 Administrative expenses  -            (4,872)                (4,574)           (8,095)
 Normal
     - Exceptional                         529                  (934)             (911)
     - Total                           (4,343)                (5,508)           (9,006)


 Operating profit                        9,019                  4,731            13,273

 EBITDA*                                10,550                  7,569            18,173
 Depreciation and impairment           (2,551)                (2,255)           (4,463)
 losses                                    491                    351               474
 Profit on the sale of plant
 and equipment
 Normalised operating profit             8,490                  5,665            14,184
 Profit on the sale of property            529                      -                 -
 Pension curtailment charge                  -                  (934)             (911)
 Operating profit                        9,019                  4,731            13,273

 Income from other                           -                      -               209
 participating interests                   476                    430               624
 Finance income                        (1,025)                  (860)           (1,728)
 Finance costs
 Profit before taxation                  8,470                  4,301            12,378


 Taxation                              (2,301)                (1,444)           (3,829)
 Profit after tax for the                6,169                  2,857             8,549
 financial period
 There were no discontinued                                         .
 operations in any of the above
 periods.


 Earnings per share from
 continuing operations
                                        13.85p                  6.41p            19.19p
                                        13.85p                  6.41p            19.19p
 Basic (pence)
 Diluted (pence)


 Dividends paid per equity              33.60p                     -p                -p
 share (pence)


    *    Earnings Before Interest, Taxation, Depreciation, Amortisation, Impairment provisions and exceptional costs.
    **    Finance income and finance costs have been restated on a consistent basis with the 52 weeks ended 29 December 2007







    Andrews Sykes Group plc
    Consolidated Balance Sheet
    As at 30 June 2008 (unaudited)

                                  30 June 2008    30 June 2007    29 December 2007
                                         �'000           �'000               �'000

 Non-current assets                                                               
 Property, plant and equipment          15,489          15,340              15,668
                                                                                  
 Lease prepayments                         93              224                  96
 Trade investments                         164             164                 164
 Deferred tax asset                        831           2,361               1,404
 Derivative financial                      100             161                  13
 instruments
                                        16,677          18,250              17,345
 Current assets                                                                   
 Stocks                                  5,904           5,830               5,742
 Trade and other receivables           17,447           15,318              16,317
 Cash and cash equivalents              12,870          11,908              13,102
 Assets held for sale                      405               -                 494

                                        36,626          33,056              35,655
                                                                                  
 Current liabilities
 Trade and other payables
 Current tax liabilities              (11,899)        (14,436)            (11,371)
 Bank loans                            (1,633)         (1,343)             (1,370)
 Obligations under finance             (5,000)        (5,000)              (5,000)
 leases                                  (252)           (233)               (415)
 Provisions                                  -            (15)                (15)

                                      (18,784)        (21,027)            (18,171)
 Net current assets                     17,842          12,029              17,484
 Total assets less current              34,519          30,279              34,829
 liabilities
 Non-current liabilities                                                          
 Bank loans                           (29,000)        (20,000)            (19,000)
 Obligations under finance               (900)         (1,078)             (1,006)
 leases                                  (432)         (2,190)             (1,238)
 Retirement benefit obligations              -               -                (38)
 Derivative financial
 instruments
                                      (30,332)        (23,268)            (21,282)

 Net assets                              4,187           7,011              13,547
                                                                                  
 Equity                                                                           
 Share capital                          446                446                 446
 Retained earnings                      2,675            6,701              12,595
 Translation reserve                      834            (368)                 274
 Other reserves                            222             222                 222
  
 Surplus attributable to equity          4,177           7,001              13,537
 holders of the parent
 Minority interest                          10              10                  10
 Total equity                            4,187           7,011              13,547






    Andrews Sykes Group plc
    Consolidated Cash Flow Statement
    For the 26 weeks ended 30 June 2008 (unaudited)



                                       26 weeks      26 weeks           52 weeks
                                          ended         ended              ended
                                        30 June       30 June        29 December
                                           2008          2007               2007
                                          �'000         �'000              �'000
                                                               
 Cash flows from operating                                                      
 activities                               7,821         5,259             11,211
 Cash generated from operations          (846)          (211)            (1,115)
 Interest paid                            (802)       (1,352)            (2,202)
 Net UK corporation tax paid               (70)          (69)                 50
 Net withholding tax (paid) /             (249)         (213)              (877)
 recovered                                                     
 Overseas tax paid                                             
                                                               
 Net cash inflow from operating           5,854         3,414              7,067
 activities                                                    
                                                                                
 Investing activities                                          
 Dividends received from                      -                
 participating interests (trade               -             -                209
 investments)                                             295                295
 Disposal costs paid less                   636                                 
 consideration received on prior        (2,458)           389                778
 year disposals                             405       (2,408)            (5,346)
                                                          136                440
 Sale of property, plant and                                   
 equipment                                                     
 Purchase of property, plant &                                 
 equipment                                                     
 Interest received                                             
                                                               
 Net cash outflow from investing        (1,417)       (1,588)            (3,624)
 activities                                                    
                                                               
 Financing activities                                          
 Loan repayments                       (24,000)                
 New loans raised                        34,000             -            (1,000)
 Finance lease capital repayments       (195)               -                  -
 Equity dividends paid                 (14,970)          (69)              (141)
                                                            -                  -
                                                               
 Net cash outflow from financing        (5,165)          (69)            (1,141)
 activities                                                    
                                                               
 Net (decrease) / increase in cash        (728)         1,757              2,302
 and cash equivalents                                          
                                                               
                                         13,102        10,190             10,190
 Cash and cash equivalents at               496          (39)                610
 beginning of period                                           
 Effect of foreign exchange rate                               
 changes                                                       
                                                               
 Cash and cash equivalents at end        12,870        11,908             13,102
 of period                                                     
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
 Reconciliation of net cash flow                               
 to movement in net debt in the                                
 period                                                        
                                        (728)                  
                                       24,195           1,757              2,302
 Net (decrease) / increase in cash     (34,000)            69              1,141
 and cash equivalents                       74              -                  -
 Cash outflow from loan and                 125             -              (182)
 finance lease repayments                                 138               (48)
 Cash inflow from the increase in                              
 loans                                                         
 Non cash movements re finance                                 
 leases                                                        
 Non cash movements in the fair                                
 value of derivative instruments                               
 Movement in net debt during the       (10,334)         1,964              3,213
 period                                (12,344)      (16,167)           (16,167)
 Opening net debt at the beginning          496          (39)                610
 of period                                                     
 Effect of foreign exchange rate                               
 changes                                                       
 Closing net debt at the end of        (22,182)      (14,242)           (12,344)
 period                                                        



    Andrews Sykes Group plc
    Consolidated Statement of Recognised Income and Expense
    For the 26 weeks ended 30 June 2008 (unaudited)


                                      26 weeks       26 weeks            52 weeks
                                         ended          ended               ended
                                       30 June        30 June         29 December
                                          2008           2007                2007
                                         �'000          �'000               �'000
                                                               
 Actual return less expected           (1,759)              -                 154
 return on pension scheme                    -              -                 424
 assets                                                        
 Experience gains and losses                                   
 arising on plan obligation                205              -               (279)
 Changes in demographic and                560           (46)                 595
 financial assumptions                   435             (11)               (107)
 underlying the                                                
 present value of plan                                         
 obligations                                                   
 Currency translation                                          
 differences on foreign                                        
 currency net investments                                      
 Deferred tax on items posted                                  
 directly to equity                                            
                                                               
 Net (expense) / income                  (559)           (57)                 787
 recognised directly in equity                                                   
                                                                            8,549
                                         6,169          2,857  
 Profit for the period                                         
 attributable to equity                                        
 shareholders                                                  
                                                               
 Total recognised income and                                   
 expense for the period                  5,610          2,800               9,336
 attributable to equity holders                                
 of the parent                                                 




    Andrews Sykes Group plc
    Notes to the consolidated interim financial statements
    For the 26 weeks ended 30 June 2008 (unaudited)


    1    General information

    Basis of preparation

    These interim financial statements have been prepared in accordance with International Accounting Standards (IAS) and International
Financial Reporting Standards (IFRS) as adopted by the European Union and with the Companies Act 1985 to 2006. 

    The information for the 52 weeks ended 29 December 2007 does not constitute the group's statutory accounts for 2007 as defined in
Section 240 of the Companies Act 1985. Statutory accounts for 2007 have been delivered to the Registrar of Companies. The Auditor's report
on those accounts was unqualified and did not contain statements under Section 273(2) or (3) of the Companies Act 1985. These interim
financial statements, which were approved by the Board of Directors on 24 September 2008, have not been audited or reviewed by the
Auditors.

    These interim financial statements have been prepared using the historical cost basis of accounting except for:

                     i)    Properties held at the date of transition to IFRS which are stated at deemed cost;
    ii)    Assets held for sale which are stated at the lower of fair value less anticipated disposal costs and carrying value and
    iii)     Derivative financial instruments (including embedded derivatives) which are valued at fair value.

    Functional and presentational currency

    The financial statements are presented in pounds sterling because that is the functional currency of the primary economic environment in
which the group operates. 



    2    Accounting policies

    These interim financial statements have been prepared on a consistent basis and in accordance with the accounting policies set out in
the group's Annual Report and Financial Statements 2007.


    3     Revenue

    An analysis of the group's revenue is as follows:

                                  26 weeks ended  26 weeks ended  52 weeks ended
                                    30 June 2008    30 June 2007     29 December
                                           �'000           �'000            2007
                                                                           �'000
 Continuing Operations
 Hire                                     26,311          19,693          43,579
 Sales                                     4,926           4,084           8,043
 Installations                             2,636           3,408           6,224

 Group consolidated revenue from          33,873          27,185          57,846
 the sale of goods and services                -               -             209
 Income from other participating
 interests


 Finance income                              476             430             624
 Gross consolidated revenue               34,349          27,615          58,679


    4     Pension curtailment charge

                                    26 weeks      26 weeks       52 weeks
                                        ended        ended          ended
                                     30 June      30 June     29 December
                                         2008         2007           2007
                                        �'000        �'000          �'000
 Pension curtailment charge                 -        (934)          (911)

    Last year every member of the Andrews Sykes Group Defined Benefit Pension Scheme (ASGPS) was given the opportunity of transferring their
accrued rights to an independent pension provider of their choice. An incentive equal to 40% of the normally available transfer value was
offered and this could either be paid directly to the member, as a cash bonus, or to their new pension provider, via the ASGPS, as an
enhanced transfer value (ETV). As well as the presentations made by independent financial advisors, the group paid for independent financial
advice to be made available to each member.


    5     Earnings per share

    Basic earnings per share

    The basic figures have been calculated by reference to the weighted average number of ordinary shares in issue and the earnings as set
out below. There are no discontinued operations in any period.

                                             26 weeks to 30 June 2008
                                   Continuing earnings �'000    Number of shares
 Basic earnings/weighted average                       6,169          44,552,865
 number of shares                                             
 Basic earnings per ordinary                          13.85p  
 share (pence)                                                
                                                              
                                                              
                                             26 weeks to 30 June 2007
                                   Continuing earnings �'000    Number of shares
 Basic earnings/weighted average                       2,857          44,552,715
 number of shares                                             
 Basic earnings per ordinary                           6.41p  
 share (pence)                                                
                                                              
                                                              
                                           52 weeks to 29 December 2007
                                   Continuing earnings �'000    Number of shares
 Basic earnings/weighted average                       8,549          44,552,790
 number of shares                                             
 Basic earnings per ordinary                          19.19p  
 share (pence)                                                



    Adjusted basic earnings per share excluding profit on sale of property and pension curtailment charge

    The basic figures excluding the profit on sale of property and the pension curtailment charge have been calculated by reference to the
weighted average number of ordinary shares in issue and the earnings as set out below. There are no discontinued operations in any period.

                                             26 weeks to 30 June 2008
                                   Continuing earnings �'000    Number of shares
 Basic earnings/weighted average                       6,169          44,552,865
 number of shares                                             
 Less profit on the sale of                            (517)  
 property net of tax                                          
 Adjusted basic earnings/weighted                      5,652          44,552,865
 average number of shares                                     
 Adjusted basic earnings per                          12.69p  
 ordinary share (pence) excluding                             
                                                              
 profit on sale of property                                   
                                                              
                                                              
                                                              
                                                              
                                                              
                                                              
                                                              
                                                              
                                                              
                                                              
                                                              

    
Adjusted basic earnings per share excluding profit on sale of property and pension curtailment charge

                                           26 weeks to 30 June 2007
                                    Continuing earnings    Number of shares
                                                  �'000  
 Basic earnings/weighted average                  2,857          44,552,715
 number of shares                                   654  
 Add back pension curtailment                            
 charge net of tax                                       
 Adjusted basic earnings/weighted                 3,511          44,552,715
 average number of shares                                
 Adjusted basic earnings per                      7.88p  
 ordinary share (pence) excluding                        
 pension curtailment charge                              

                                       52 weeks to 29 December 2007
                                  Continuing earnings    Number of shares
                                                �'000  
 Basic earnings/weighted                        8,549          44,552,790
 average number of shares                              
 Add back pension curtailment                     638  
 charge net of tax                                     
 Adjusted basic                                 9,187          44,552,790
 earnings/weighted average                             
 number of shares                                      
 Adjusted basic earnings per                   20.62p  
 ordinary share (pence)                                
 excluding pension curtailment                         
 charge                                                
                                                       

    Diluted earnings per share

    The calculation of the diluted earnings per ordinary share is based on the profits and shares as set out in the tables below. There are
no discontinued operations in any period. The share options have a dilutive effect for the period calculated as follows:

                                              26 weeks to 30 June 2008
                                      Continuing earnings     Number of shares
                                                     �'000  
 Basic earnings/weighted average                     6,169          44,552,865
 number of shares                                           
                                                            
                                                                        15,000
 Weighted average number of shares                          
 under option                                               
                                                                      (11,966)
                                                            
 Number of shares that would be                             
 issued at fair value to satisfy                            
 above options                                              
 Earnings/diluted weighted average                   6,169          44,555,899
 number of shares                                           
 Diluted earnings per ordinary share                13.85p  
 (pence)                                                    
                                                            
                                              26 weeks to 30 June 2007
                                      Continuing earnings     Number of shares
                                                     �'000  
 Basic earnings/weighted average                     2,857          44,552,715
 number of shares                                                             
                                                                        15,000
                                                            
 Weighted average number of shares                          
 under option                                                          (8,001)
                                                            
                                                            
 Number of shares that would be                             
 issued at fair value to satisfy                            
 above options                                              
 Earnings/diluted weighted average                   2,857          44,559,714
 number of shares                                           
 Diluted earnings per ordinary share                 6.41p  
 (pence)                                                    


                                            52 weeks to 29 December 2007
                                      Continuing earnings     Number of shares
                                                     �'000  
 Basic earnings/weighted average                     8,549          44,552,790
 number of shares                                                             
                                                                        15,000
                                                            
 Weighted average number of shares                          
 under option                                                          (8,065)
                                                            
                                                            
 Number of shares that would be                             
 issued at fair value to satisfy                            
 above options                                              
 Earnings/diluted weighted average                   8,549          44,559,725
 number of shares                                           
 Diluted earnings per ordinary share                19.19p  
 (pence)                                                    

    Adjusted diluted earnings per share excluding profit on sale of property and pension curtailment charge

    The calculation of the diluted earnings per ordinary share excluding the profit on sale of property and the pension curtailment charge
is based on the profits and shares as set out in the table below. There are no discontinued operations in any period. The share options have
a dilutive effect for the period calculated as follows:

                                         26 weeks to 30 June 2008
                                  Continuing earnings    Number of shares
                                                �'000  
 Basic earnings/weighted                        6,169          44,552,865
 average number of shares                       (517)  
 Less profit on the sale of                            
 property net of tax                                               15,000
 Weighted average number of                                      (11,966)
 shares under option                                   
 Number of shares that would be                        
 issued at fair value to                               
 satisfy above options                                 
 Adjusted earnings/diluted                      5,652          44,555,899
 weighted average number of                            
 shares                                                
 Adjusted diluted earnings per                 12.69p  
 ordinary share (pence)                                
 excluding profit on sale of                           
 property                                              
                                         26 weeks to 30 June 2007
                                 Continuing earnings     Number of shares
                                                �'000  
 Basic earnings/weighted                        2,857          44,552,715
 average number of shares                         654  
 Add back pension curtailment                          
 charge net of tax                                                 15,000
 Weighted average number of                                       (8,001)
 shares under option                                   
 Number of shares that would be                        
 issued at fair value to                               
 satisfy above options                                 
 Adjusted earnings/diluted                      3,511          44,559,714
 weighted average number of                            
 shares                                                
 Adjusted diluted earnings per                  7.88p  
 ordinary share (pence)                                
 excluding pension curtailment                         
 charge                                                
                                       52 weeks to 29 December 2007
                                 Continuing earnings     Number of shares
                                                �'000  
 Basic earnings/weighted                        8,549          44,552,790
 average number of shares                         638  
 Add back pension curtailment                          
 charge net of tax                                                 15,000
 Weighted average number of                                       (8,065)
 shares under option                                   
 Number of shares that would be                        
 issued at fair value to                               
 satisfy above options                                 
 Adjusted earnings/diluted                      9,187          44,559,725
 weighted average number of                            
 shares                                                
 Adjusted diluted earnings per                 20.62p  
 ordinary share (pence)                                
 excluding pension curtailment                         
 charge                                                



    6     Dividend payments and loan restructuring

    No interim dividends were declared or paid during either of the previous financial periods.

    The directors declared and paid the following interim dividends in respect of the 52 weeks ending 31 December 2008 during the period
under review:

                                                             Pence per   �'000
                                                                 share




                                                                 6.50p
                                                                         2,896



                                                                27.10p
                                                                        12,074
 Interim dividend declared on 26 March 2008 and paid to
 shareholders on the register as at 4 April 2008 on 18
 April 2008

 Interim dividend declared on 24 April 2008 and paid to
 shareholders on the register as at 2 May 2008 on 16 May
 2008
                                                                33.60p  14,970

    The above interim dividends have been charged against retained earnings during the current period.

    Clearance was obtained from the pensions regulator and trustees of the Andrews Sykes Group Defined Benefit Pension Scheme (ASGPS) prior
to the payment of the second interim dividend on 16 May 2008. As part of that process it was agreed that a special contribution of �1.7
million would be paid by the company to the ASGPS and this is shown in note 7 below. 

    The above dividend and pension scheme payments were mainly financed by net additional bank loans of �10 million comprising new loan
draw-downs of �34 million less loan repayments of �24 million. The interest rates and covenants on the new loans are similar to those in the
previous agreements and interest rate caps continue to be held to limit the group's exposure to increases in LIBOR.


    7     Retirement benefit obligations - Defined benefit pension scheme

    The group closed the UK group defined benefit pension scheme to future accrual as at 31 December 2002. The assets of the defined benefit
pension scheme continue to be held in a separate trustee administered fund.

    The group are making additional contributions to remove the funding deficit in the group pension scheme. These contributions include
both one-off and regular monthly payments, �125,000 per month in the period under review, and are agreed in advance with the trustees of the
pension scheme.

    Assumptions used to calculate the scheme deficit

    A full actuarial valuation has been carried out as at 31 December 2007 and this was used as a basis for calculating the deficit as at 29
December 2007. In view of the significant changes in market conditions between the end of December 2007 and 30 June 2008, the valuation has
been further updated by a qualified independent actuary to take into account current market conditions.

    The major assumptions used in this valuation to determine the present value of the scheme's defined benefit obligation were as follows:

                                               30 June  30 June  29 December
                                                  2008     2007         2007


                                                   N/A      N/A          N/A
 Rate of increase in pensionable salaries        4.00%    3.00%        3.40%
 Rate of increase in pensions in payment         6.60%    5.40%        5.90%
 Discount rate applied to scheme liabilities     4.10%    3.00%        3.40%
 Inflation assumption

    Assumptions regarding future mortality experience are set based on advice in accordance with published statistics. The current mortality
table used is PA92YOBMC+2 (29 December 2007: PA92YOBMC+2, 30 June 2007: PA92C2020)

    The assumed average life expectancy in years of a pensioner retiring at the age of 65 given by the above tables is as follows:

                          30 June     30 June   29 December
                             2008        2007          2007

 Male, current age 45  21.2 years  19.8 years    21.2 years
 Female, current age   24.0 years        22.8    24.0 years
 45                                     years


    Valuations

    The fair value of the scheme's assets, which are not intended to be realised in the short term and may be subject to significant change
before they are realised, and the present value of the scheme's liabilities which are derived from cash flow projections over long periods
and are inherently uncertain, were as follows:

                                              30 June    30 June   29 December
                                                 2008       2007          2007
                                                �'000      �'000         �'000

 Total fair value of plan assets               26,794     24,557        25,913
 Present value of defined benefit funded                              (27,151)
 obligation                                  (27,226)   (26,747)
 Deficit in the scheme - pension liability      (432)    (2,190)       (1,238)
 recognised in the balance sheet


    The movements in the fair value of the scheme's assets over the reporting period are as follows:

                                               30 June   30 June   29 December
                                                  2008      2007          2007
                                                 �'000     �'000         �'000

 Fair value of plan assets at the               25,913    33,445        33,445
 start of the period                               692     1,050         1,926
 Expected return on plan assets                (1,759)         -           154
 Actuarial (losses)/gains                          750       750         1,500
 recognised in the SORIE                         1,700         -             -
 Employer contributions - normal                     -     2,296         1,880
 Employer contributions - special                (502)     (402)       (1,269)
 (note 6)                                            -                (11,723)
 Employer contributions - transfer                      (12,582)
 value exercise
 Benefits paid
 Settlements and curtailments

 Fair value of plan assets at the               26,794    24,557        25,913
 end of the period

    Employer contributions in respect of the transfer value exercise and settlements and curtailments were both estimated at 30 June 2007
and finalised at 29 December 2007.



    The movement in the present value of the defined benefit obligation during the period was as follows:


                                            30 June     30 June    29 December
                                               2008        2007           2007
                                              �'000       �'000          �'000

 Present value of defined benefit          (27,151)    (40,022)       (40,022)
 funded obligation at the beginning of        (782)     (1,061)        (1,888)
 the period                                     205           -            145
 Interest on defined benefit obligation         502         402          1,269
 Actuarial gain /(loss) recognised in            -       13,934         13,345
 the SORIE
 Benefits paid
 Settlements and curtailments

 Present value of defined benefit          (27,226)    (26,747)       (27,151)
 funded obligation at the end of the
 period



    Amounts recognised in the income statement

    The amounts (charged) / credited in the income statement were:

                                            30 June   30 June   29 December
                                               2008      2007          2007
                                              �'000     �'000         �'000

 Expected return on pension scheme assets       692     1,050         1,926
 Interest on pension scheme liabilities       (782)                 (1,888)
                                                      (1,061)
 Net pension interest (charge) / income        (90)      (11)            38
 Settlements and curtailments                     -     1,352         1,622
                                               (90)     1,341         1,660



    8     Share capital


                                          30 June 2008   30 June   29 December
                                                 �'000      2007          2007
                                                           �'000         �'000
 Authorised:
 1,398,170,943 ordinary shares of one           13,982    13,982        13,982
 pence each (30 June 2007 and 29
 December 2007: 1,398,170,943 ordinary
 shares of one pence each)

 Issued and fully paid:
 44,552,865 ordinary shares of one pence
 each 
 (30 June 2007 and 29 December 2007:
 44,552,865 ordinary shares of one pence           446       446           446
 each)


    During the period the company did not buy back any shares for cancellation (26 weeks ended 30 June 2007: Nil shares).  

    The company has one class of ordinary shares which carry no right to fixed income.

    At 30 June 2008 cash options to subscribe for ordinary shares under the executive share option scheme were held as follows:


                                                            Number of one pence ordinary shares
 Date of grant  Date normally         Subscription price     30 June 2008  30 June  29 December
                exercisable           per share                               2007         2007
 November 2001  November 2004 to      89.5 pence                   15,000   15,000       15,000
                October 2011


    No share options were granted, forfeited or expired during either the current or previous financial periods.

    No share options were exercised during the period (26 weeks ended 30 June 2007: Nil options).




    9     Cash generated from operations
                                 26 weeks ended  26 weeks ended  52 weeks ended
                                   30 June 2008    30 June 2007     29 December
                                          �'000           �'000            2007
                                                                          �'000
 Profit for the period                    6,169           2,857           8,549
 attributable to equity
 shareholders
 Adjustments for:                         2,301           1,444           3,829
 Taxation charge                              -             934             911
 Pension curtailment charge               1,025             860           1,728
 Finance costs                            (476)           (430)           (624)
 Finance income                               -               -           (209)
 Income from other                      (1,020)           (351)           (474)
 participating interests                  2,551           2,224           4,432
 Profit on the sale of                        -              31              31
 property, plant and equipment            (750)           (750)         (1,500)
 Depreciation and amortisation          (1,700)           (868)         (4,279)
 Impairment losses
 Excess of normal pension
 contributions compared with
 service cost
 Special pension contributions

 Cash generated from operations           8,100           5,951          12,394
 before movements in working
 capital
                                          (162)         (1,493)         (1,406)
                                          (603)             760           (350)
 Increase in stocks                         501              50             582
 (Increase) / decrease in trade            (15)             (9)             (9)
 and other receivables
 Increase in trade and other
 payables
 Decrease in provisions

 Cash generated from operations           7,821           5,259          11,211


    10     Analysis of net debt

                                  30 June 2008  30 June 2007  29 December 2007
                                         �'000         �'000             �'000
 Cash and cash equivalents per          12,870        11,908            13,102
 cash flow statement
 Derivative financial                      100           161                13
 instruments
 Financial assets                          100           161                13
 Bank loans                           (34,000)      (25,000)          (24,000)
 Obligations under finance             (1,152)       (1,311)           (1,421)
 leases
 Derivative financial                        -             -              (38)
 instruments
 Financial liabilities                (35,152)      (26,311)          (25,459)
 Net debt                             (22,182)      (14,242)          (12,344)

    11     Distribution of interim financial statements

    Following a change in regulations, the company is no longer required to circulate this half year report to shareholders. This enables us
to reduce costs associated with printing and mailing and to minimise the impact of these activities on the environment. A copy of the
interim financial statements is available on the company's website, www.andrews-sykes.com.


This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
IR ILFIRADISFIT

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